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IRS Reveals Few Changes for Forms 1094-C & 1095-C

IRS Reveals Few Changes for Forms 1094-C & 1095-C

The IRS released the draft instructions for Forms 1094-C and 1095-C on November 13, 2019. And while many, including us, believe there would be some changes due to the reduction of the Individual Mandate to zero dollars, the draft showed little to no changes compared to the previous year.

The changes made in the instructions refer mainly to numerical figures that change year-to-year due to inflation. On page six, the second column section, “Information reporting penalties,” states the total penalty charged for a calendar year will not exceed $3,339,000, a $64,000 increase from 2018. Another noted change is found on...

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The Dreaded 226J Letter

The Dreaded 226J Letter

Think back to when you were in college.  Did you have that one class that didn’t seem important?  Maybe it was a requirement for freshmen. Maybe it was a general education course that just couldn’t hold your interest.  Yet, when you turned in the final exam you had a feeling your lack of effort and interest would come back to haunt you.  Then, your grade posted and it haunted your GPA for the next four years!

Meet the 226J letter from the IRS.  It is the threat that...

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Declining Marketplace Numbers

Declining Marketplace Numbers

At first glance the chart below seems pretty straightforward.  The Affordable Care Act enrollment numbers began increasing in 2014 due to numerous factors and changes to the law, including, but not limited to, health insurance exchanges opening, federal subsidies were offered, small business tax credits were awarded, and restrictions on pre-existing conditions were lifted. Numbers increased greatly in 2015, slightly in 2016 and 2017, then began to decline in 2018, with a steep decline in 2019.

Yes, that is clear! ACA came into law, numbers increased.  President Trump was elected and promised to dismantle ACA in 2018, therefore the numbers decreased. The...

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ACA Update

ACA Update

On Friday afternoon, December 14, Judge Reed O’Connor for the United States District Court for the Northern District of Texas, Fort Worth Division ruled that the individual mandate was now unconstitutional since the Tax Cuts and Jobs Act reduced the individual mandate penalty to $0.00 commencing in 2019. The court also ruled that since the individual mandate was “essential” to congressional intent in passing the Affordable Care Act,and the law’s effective operation, the other provisions of the ACA could not be severed and therefore, Judge Connor deemed the entire ...

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